Up to new 30 jobs will be created after planning chiefs resolved to grant permission to convert the former Co-op store in Wrekenton into a new branch of the German discount chain.
An Aldi supermarket is to open in Gateshead after plans for a new store were approved.
The proposed new supermarket would sit on the corner of Old Durham road, Springwell Road and the High Street, which is currently home to a council-owned car park.
A meeting of Gateshead's Planning and Development Committee on Wednesday gave the proposals the go-ahead subject to the completion of legal work.
SPeaking as plans were submitted, an Aldi spokesperson said: "We are delighted to be able to confirm our plans for the former Co-op store in Wrekenton, and are keen to provide local residents with convenient access to an Aldi store.
"The location of this site makes it ideal for Aldi to bring enhanced benefits to the whole community and introduce a brand new food store that has been designed to complement existing offerings and provide greater choice for local residents.
"We believed an Aldi food store in this location would improve the overall shopping experience and benefit the local community as the plans include a total of 126 long-and-shirt-term car parking spaces to serve both store and local centre."
The Co-op which had previously occupied the site closed its doors in November 2016, leaving the 30 staff who worked there out of work.
The current building would be transformed, with a design likely to be similar to the Aldi stores in the area.
The single-storey supermarket will be slightly lower than the previous Co-op and occuy a similar amount of space.
Elements of the car park will be retained to accommodate short and long-term parking spaces as well as a charging point for electric cars.
Once work is complete, opening hours for the new Aldi store would be 8am to 10pm Monday to Saturday and 9am to 6pm on Sundays.